Date: 12-03-1998

Case Style: Williams Construction Company v. Pryor Nitrogen, Inc. and Willard Grain & Feed, Inc., d/b/a Wil-Gro Fertilizer, et al.

Case Number: CJ-97-238

Judge: James D. Goodpaster

Court: District Court, Mayes County, Oklahoma

Plaintiff's Attorney: Mark D. Lyons and Charles T. Plake of Lyons & Clark, Tulsa, Oklahoma

Defendant's Attorney: James L. Kincaid, Cheryl Cooper, and R. Michael Cole of Crowe & Dunlevy, Tulsa, Oklahoma

Description: Pryor Nitrogen contracted with Williams Construction and its subcontractor, Apex Plumbing, Heating & Piping, Inc., to construction three chemical plants at the Wil-Gro Fertilizer plant at the Mid-America Industrial Park near Pryor, Oklahoma, for approximately $10,000,000. The construction was delayed and additional costs were incurred by the contractors due to actions of the owner. After negtiations with the owner proved unsuccessful, Williams Construction and Apex filed mechanics' and materialmans' liens on the property. Subsequently, a lawsuit was brought for breach of contract, and to foreclose the liens. Pursuant to a clause in the contract, Pryor Nitrogen filed a demand for arbitration with the American Arbitration Association alleging that Williams and Apex were liabile for delay damages of $4,950,000. The matter was order to arbitration according to the rules of the American Arbitration Association, Construction Industry Tribunal. At the arbitration, Williams and Apex put forth evidence that construction was delayed due to the improper management of the project by Pryor Nitrogen and Wil-Gro Fertilizers by the late delivery of major pieces of equipment and the discovery of asbestos on the jobsite. Additionally, Williams and Apex alleged that Pryor Nitrogen and Wil-Gro failed to provide accurate and complete plans and drawsings and failed to provide a comprehensive project schedule. After arbitration heaing, which lasted eight days, the arbitration panel returned an award in favor of Williams and Apex which totaled $966,383.68.

Outcome: Parties settled for $1,000,000

Plaintiff's Experts: Leo Hilinsky, Claremore, Oklahoma, construction practices expert and International Consulting Enterprises, Inc., Colorado Springs, Colorado

Defendant's Experts: Richard Roy, Austin, Texas, construction practices and claims expert and Peter Hagan, C.P.A., Dallas, Texas, accountant about damages.

Comments: None